Investigation Results/Statistics

2006

In carrying out its mission "to promote dependable, accessible financial information" the Board is responsible for investigating complaints against CPAs, CPA-Inactive certificateholders, and CPA firms. Complaints can originate from clients, other CPAs, federal or state regulators, or identified through agency oversight and review programs. Complaints result from allegations of technical errors, or ethical or legal violations. The Board has closed 60 cases during 2006. Complaints or inquiries originated from the following sources:

Source		Percent
Agency oversight programs	30	51%
Clients	8	13%
Other CPA's	2	2%
Miscellaneous	17	29%
Anonymous	3	5%

The 60 cases closed during 2006 resulted from the following allegations:

Use of title or holding out in public practice by a nonCPA or non WA CPA	10	17%
Issuance of audit, review, or compilation report by unauthorized individual	1	2%
Records retention	3	5%
Noncompliance with technical standards including Quality Assurance Review
Noncompliance with code of conduct including conflict of interest	5	8%
Failure to respond to Board oversight/inquiries
Failure to meet/substantiate CPE	26	44%
Use of title or holding out in public practice with a lapsed license/certificate or no CPA firm license	11	18%
Good character determination for initial licensure
Felony conviction/disbarment
Embezzlement, fraud, dishonesty, or negligence
Fiduciary malfeasance or breach of fiduciary duties/disbarment	2	2%
Failure to complete engagement
Failure to pay individual federal income taxes
Incompetence	1	2%
Reinstatement of suspended license request	1	2%
Total:	60	100%

The Board resolved the 60 cases during 2006 as follows:

Closed via Board Order	15	24%
Lack of evidence of violation	13	22%
Death of licensee
Closed via an settlement/informal agreement (other than a Board Order)	11	19%
Administrative Sanctions Imposed	20	35%